Korean Chipmakers Face New Risks as AI Memory Dominance Fuels Trade and Antitrust Concerns

Samsung and SK Hynix Must Navigate U.S. Pressure, Market Concentration and Potential Oversupply as Their Global Influence Grows

Samsung Electronics and SK Hynix, which are leading the artificial intelligence semiconductor boom and posting record-breaking earnings, are facing a new set of challenges.

As the influence of South Korean companies in the global memory market expands rapidly, the possibility of trade pressure, particularly from the United States, and concerns over market concentration are emerging as potential risks.

Japan’s Nikkei reported on July 8 that if the presence of Korean companies in the AI memory market becomes excessively dominant, trade tensions similar to the semiconductor conflict between the United States and Japan in the 1980s could emerge.

The global memory semiconductor market is currently led by Samsung Electronics and SK Hynix. The two companies are expanding their influence on the back of their competitiveness in high-bandwidth memory, a critical component for AI servers, while the three major DRAM suppliers — including U.S.-based Micron Technology — control an overwhelming share of the global market.

The rapid spread of generative AI has fueled a surge in HBM demand, increasing global dependence on Korean semiconductor companies. As competition to build AI data centers intensifies, the limited number of companies capable of supplying advanced memory products reliably and at scale has become a major competitive advantage for Samsung and SK Hynix.

However, growing market power could also bring greater regulatory and trade risks.

Some consumers and small businesses in the United States have already filed lawsuits against Samsung Electronics, SK Hynix and Micron, seeking damages over alleged pricing practices.

The plaintiffs claim that semiconductor companies expanded production of HBM for AI applications while restricting supplies of conventional DRAM, contributing to higher prices.

Regardless of the actual market dynamics, the semiconductor industry is closely watching whether the high concentration of supply could develop into a broader political issue in the United States.

Experts say that if Korean companies further increase their influence in the AI memory market, the U.S. government could demand additional production capacity or greater investment in the country in the name of supply chain security.

The experience of Japan’s semiconductor industry in the 1980s is increasingly being cited as a historical comparison.

As Japanese chipmakers rapidly expanded their global market share, the United States intensified pressure over trade imbalances and market access. The resulting semiconductor agreement between the two countries reshaped Japan’s chip industry and contributed to a shift in global semiconductor leadership toward South Korea and Taiwan.

There are, however, important differences between today’s situation and the U.S.-Japan semiconductor conflict of the past.

Samsung and SK Hynix are deeply embedded in the global technology supply chain, expanding investment and production in the United States while building close partnerships with major U.S. technology companies.

Their role as reliable suppliers of critical AI infrastructure may therefore be more important than concerns over market share alone.

Another potential risk is oversupply following massive capacity expansion.

Samsung and SK Hynix are pursuing large-scale investment plans to meet rising demand for AI semiconductors. If growth in the AI market slows more sharply than expected, however, the memory industry could once again enter a correction cycle.

As the semiconductor industry has historically moved through repeated boom-and-bust cycles, the timing and scale of capacity expansion could become critical factors determining future earnings.

Samsung recently reported quarterly results that significantly exceeded market expectations, yet its share price declined. The reaction suggested that investors were more focused on concerns over intensifying AI memory competition, trade risks and the sustainability of the current semiconductor upcycle than on record-level profits.

To remain winners in the AI semiconductor era, Korean chipmakers will increasingly need more than technological leadership. Their ability to manage global supply chains and respond to trade and regulatory pressures is also expected to become a key competitive factor.

“Korean companies currently hold the strongest position in the AI memory market, but as their market power grows, they will also need to manage increasingly complex global interests and regulatory risks,” a semiconductor industry official said. “In the future, competitiveness will depend not only on technology but also on diversified production bases and stronger partnerships with customers.”